The Cotton Reserve Policy Announced That Xinjiang Cotton Arrived.

Zheng cotton futures contract price volatility trend, the main contract opened up again after the fall, after the trend of shocks, positions increased by 15 thousand to 477 thousand hands.

The development and Reform Commission announced that the reserve cotton rotation arrangement decided that the new cotton market will not be arranged until the end of February this year (until the end of next year). In 2017, the sale of cotton reserves will start from March 6th, and the deadline will be tentatively scheduled for the end of August. The number of daily sales will be temporarily suspended by 30 thousand tons.

If the market price of domestic and foreign market has obviously increased rapidly for a period of time, the turnover rate of the auction sale of reserve cotton will exceed three days or more than 70% days a week.

The announcement is basically in line with expectations, but the NDRC stressed again that the sale date was March 6th, which slightly reminded the upstream ginning plants. It is expected that the sales progress of the later ginning plants will gradually accelerate, and the announcement seems to be slightly empty.

Seed cotton prices also rose in Awati and Sha Ya counties where staple cotton was planted more closely.

On the same day, Awati's long staple cotton seed cotton was mostly 7.80 yuan / kg (32% of lint, 10% of water) and above, and the seed cotton with good consistency, long fiber and less impurity was basically around 8 yuan / kg; the annual yield of the long staple cotton in Sha Ya county was mostly 330-350 kg / mu, and cotton farmers picked slowly. So far, about 10-15% of the seed cotton has not been purchased yet, and the seed cotton sold recently is also "good", the seed cotton purchase price is generally low, and the 32% lint is 7.65 yuan / kg, but it also increased 0.05 yuan / kg yesterday.

As of November 25th,

In Awati county and Sha Ya county, the number of cotton enterprises that buy long staple cotton has been reduced, and the number of stopping and receiving continues to increase.

Talking about the reasons for the rising price of seed cotton, the head of a textile enterprise said:

First, cotton farmers have a strong desire for price.

Many cotton farmers believe that the price of long staple cotton and fine staple cotton is too small and unreasonable at the present price of 7.20-7.30 yuan / kg (39% of lint and 12% of moisture regain). So most of the long staple cotton growers hold up the price and hope that the long staple cotton will return to 8 yuan / kg.

Second, cottonseed prices are rising.

In November 25th, the mainstream price of cottonseed in Akesu was 2.45-2.50 yuan / kg, which rose by 0.10 yuan / kg compared with last week.

Especially in recent years, the pport capacity of Xinjiang has been restored, and the mainland oil extraction factory has paid for the purchase of cotton seeds in Xinjiang.

According to the current situation, cottonseed prices continue to rise, may also allow cotton prices to buy seed cotton.

Third, recent

The center of gravity has risen from 15000 yuan / ton to 16000 yuan / ton, and has basically stabilized 16000 yuan / ton in the near future, and it has hit 18000 yuan / ton weather.

The ideal is very plump and the reality is very skinny.

While seed cotton prices are rising,

Not up.

As of November 25th, Xinjiang Akesu 137 platform delivery price of 20500 yuan / ton (gross weight, self mention, including tax), Sha ya, Wensu and other places 137 level factory price 20500-20800 yuan / ton, were stable compared with last week.

According to the platform staff, although the tension of railway freight cars has been alleviated recently, road pport capacity is also recovering, but the long staple cotton is still in fact an inquiry price, and the actual turnover is small.

In addition, up to now, the cost of lint cotton grade 137 has reached 20600-20800 yuan / ton, which is basically flat with selling price, or even upside down.

However, compared with the policy of reserve cotton rotation this year and next year, substantial changes have not been made. With reference to the situation of reserve cotton rotation this year, the pressure of the next year's reserve cotton production will not be too great for the market. Therefore, it is not recommended to empty the market. It is suggested that after the drop in position, more positions will be built.